The rising price pattern on the GBP/USD currency pair chart since last week continued this week driven by changes in the US dollar currency situation.
After the war conflict in the Middle East became the focus at the beginning of the week, the US dollar was also influenced by the views of members of the Federal Reserve (Fed) regarding monetary policy.
Atlanta Fed President Raphael Bostic gave the view that the central bank does not need to continue raising interest rates again which are already tight enough.
The current weakening of the US dollar leaves room for the Pound to rise despite the absence of key UK economic data this week to support it.
The focus on economic data this week is more focused on the inflation data of the United States (US) which is a new indicator of the central bank and also drives further movement of the currency market.
The price on the GBP/USD chart continued yesterday's upward trend reaching the 1.23000 level in the Asian session this morning (Wednesday).
The increase also surpassed the high reached on last Friday's NFP surge, and set a new 2-week high.
The upside is expected to continue higher if the current resistance at 1.23000 is broken today's price.
The next target is to reach the concentration level which is in the 1.24000 zone and continue to record the latest high.
On the other hand, if the plunging price falls again, the decline is seen to head towards the 1.22000 level to be tested.
A drop that also crosses the Moving Average 50 (MA50) support level on the 1-hour time frame on the chart will also indicate a trend change to occur.
Further decline will reach back to last week's concentration level at around 1.21000.
